Ways to Avoid Bankruptcy

Bankruptcy does not have to be your only option out of mounting debt. It should only be considered as a very last resort, and it is important to remember the long list of disadvantages that accompany it. Our One dedicated advisors can offer you a selection of alternatives, such as:

• Debt Management Plan
• Debt Consolidation
• Individual Voluntary Arrangement (IVA)
• Trust Deeds (Scotland only)

How is an IVA an alternative to Bankruptcy?:

An IVA will act as a legally binding agreement between your creditors and yourself. A large proportion of the debt may be written off, and you will become debt free in just 60 months.  It allows you to avoid some of the negative implications commonly associated with bankruptcy.

Bankruptcy vs. IVA

	IVA	Bankruptcy
Will my name be kept private?	Yes, an IVA is never advertised. Although details are available on a government website.	No, bankruptcy orders are always published in your local newspaper.
Will my financial circumstances remain private?	Yes, only creditors are notified.	No, everyone that you are financially connected with will be contacted
Can I still run a business?	Yes,  you can still be a company director or practice professional roles involving finance.	No, any business will be closed immediately and certain employment  situations are hindered.
Will I keep control over my assets?	Yes, some assets can be excluded from your IVA proposal.	No, your assets will be sold to raise money for your creditors will be. Any that are acquired during the bankruptcy term, such as inheritances are also lost.
Can I keep my bank account?	Yes, although some extra facilities may be removed.	No, all bank accounts, credit cards will be closed.
Can I avoid going to court?	Yes, as long as you are free to answer questions on the phone during the creditors meeting.	No, you will always have to go to court.
Am I legally protected from my creditors?	Yes, court proceedings cannot be brought against you once the debts are bound by your IVA.	No, your creditors may sell your assets and take any appropriate action against you.

An IVA will also save you worry and give you peace of mind, as your own personal Insolvency Practitioner will deal with your creditors phone calls and letters.

The number of people choosing to file for bankruptcy is increasing every year but the Government initiated IVA is another way out of debt. We can offer you complimentary help, so please call our free on 0808 131 9100 or fill in our online form today.

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)